The TRADE 60 | Page 47

[ C O V E R S T O R Y | C AT H Y G I B S O N ] “You need to take on a role or function, become a subject matter expert in it and then you need to ensure you can pass that on to your team." always rational”, Gibson says. "It's very difficult for AI technologies to capture the irrational part of the mar- ket and, arguably, humans are better placed to do that." While technology may be able to bring some level of clarity and optimisation to trading processes, much of this development is being driven by changes in the regulatory environment. MiFID II has had around 18 months to bed into the European markets but remains the key factor for determining market complexity, buy- side strategies and technology implementation. Gibson highlights how regulation is impacting on how the firm approaches its use of technology and the implementation of new solutions, particularly challenging when compliance itself is not static, or as she puts it, “a living, breathing piece of regulation.” One example is changes around trade and transaction reporting, where even minor alterations to data fields can open up significant compliance concerns. “Those pieces of regulation mean that the burden of regression testing on any changes you have made has gone up, which in turn means that the costs of on-boarding and the risks go up,” she says. “Those are the challenges that we are facing, but that is an industry-wide chal- lenge.” Like most other heads of trading desks throughout Europe, Gibson says MiFID III is “just a matter of time” and that so far, at least, MiFID II has only been able to achieve its objective of increased transparency to “a very small extent compared to what could have happened and ESMA is aware of that.” Ultimately, regulatory change is a fact of life for asset managers and, in conjunction with their trading objectives, this is where the sub- ject matter expertise Gibson prizes at RLAM comes to the fore. It’s a role that she has aimed to take on herself throughout her career, in- forming what Gibson describes as the biggest lesson she has learned from her career to date – to always aim to make yourself dispensable. “You need to take on a role or function, become a subject matter expert in it and then you need to ensure you can pass that on to your team, to make sure that the workflow and process is in place, and then you can move on to the next thing,” she explains. “That’s better for your team because they are continuing to increase their ability and knowl- edge. It’s better for the company because they don’t have key man risk. It does sound counter-intui- tive, but I genuinely believe that it works for the team, company and individual.” Issue 60 // TheTradeNews.com // 47